Are you a seller with jumia ?
Jumia, the dominant e-commerce company in sub-Saharan Africa, is expanding the small business loan program it launched earlier this year into every country where the company operates.
Working with the San Francisco-based lender Branch, Jumia began offering start-up loan for small businesses in May. The loans were pegged to vendors sales history with Jumia and projections for the future performance of the businesses.
In Kenya, sellers received loans of up to 30,000 Kenyan shillings, with a six-month term on the loan to finance their businesses. Interest rates on the loans are 1.2% per month with over 200 sellers alread having received financing via the platform ahead of the upcoming Black Friday sales
The lending program will enable loan disbursements between Sh 100,000 – 500,000 to the small and medium businesses on its platform.
The Sellers will be given loans pegged to their sales history on Jumia platform and they will use the loan as working capital. Under this alliance, the working capital will be offered to the merchants at interest rates of between 1% to 3% per month. This according to Jumia Kenya MD Sam Chappatte.
The loans are made available in seconds on the Branch app and are disbursed through M-Pesa.
For Jumia’s co-chief executive, Sacha Poignonnec, the expansion of the program is a matter of simplifying the lending processes for small and medium sized businesses in Africa.
The Jumia lending program was launched with the aim of making it easier for SMEs to grow their businesses, We know that [small and medium-sized enterprises] on our platforms struggle to secure affordable credit from financial institutions, thereby limiting their potential to invest in their businesses and themselves. Sacha Poignonnec
The company said that Jumia sellers across the continent will be able to access credit at terms that only go as high as 12% per year.
This will be a major opportunity for jumia as the online ecommerce company already have the capacity via the existing clientele database.
Better still the application is simple as all it takes is for the sellers to fill out an online application form for the approved amount disbursed within two days.